President Donald Trump flung a litany of frustration at the Supreme Court on Friday in an angry White House press conference that took the form of a campaign rally more than a policy briefing, declaring its ruling to block his blanket use of emergency powers to impose tariffs as a great disappointment.
Trump did not retreat: he quickly turned around and declared that he has signed an executive order that would impose another 10-percent tariff on imports of almost all the nations under the other legal jurisdiction.
The ruling, which was announced several hours after the high court had struck down Trump relying on International Emergency Economic Powers Act (IEEPA) to impose a fee on imported items, was a decision not to lose but to take a detour in his aggressive trade agenda, the president joked, “I can do anything I want with IEEPA… anything, but I can charge nobody with it.”
Clarence Thomas, Samuel Alito, and Brett Kavanaugh also dissented and Trump capitalized on this fact with a show of gratitude: “I am ashamed of some of my court justices, I am completely ashamed, that they did not have the heart to do the right thing in America.”
He was grateful to the three who stood his ground, but criticized the majority, which he termed as a terrible decision yet offered some room to maneuver his push towards protectionism, which has been the economic playbook that Trump has led since his inaugural term.
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The Supreme Court, he said, did not strike tariffs, it was simply the striking down of IEEPA tariffs applied to a given use and in effect to a given use in order to get a fee, adding other instruments were in his arsenal. Under the new order, the Court has recognized methods, practices, statutes, and authorities that are even more powerful than the tariffs.
‘I have a choice’: Trump
“I currently have a chance to introduce with the help of the Trade Expansion Act, though not so widely known, namely under Section 122 of the said Act, which has a less-known provision of temporary duties to solve the problem of balance-of-payments. It was in addition to our existing tariffs,” said Trump terming tariffs as above the normal tariffs, and limited to 150 days though could be extended.
The existing duties on Section 232 (national security) and Section 301 (unfair trade practices) also remain, he promised. As such, all national security tariffs under Section 232 and current tariffs under Section 301 that they currently have will terminate immediately. “They are there and they are in route and in full effect,” Trump said.
U.S. Trade Representative Jameison Greer parroted the determination of the president, calling the actions smooth. “We have Section 122, which will be in force to-day… We have Section 301 research that is deemed to be made up of incredible legal persistence and we will have continuity in the program,” Greer told media in a later statement.
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New Section 301 investigations into purported unfair practices by trading partners are also coming, and point to new targeted hits in the future. But it is all unclear on what to do with the roughly $175 billion of tariff collections already made pursuant to the now-abrogated IEEPA regime.
Trump Shrugs Off on Possible Refunds
Trump would shrug on the issue of possible refunds as unresolved. “I can spend months and months to write an opinion and they do not even talk about that,” he grumbled. “I suppose we have to litigate it during the next two years… We shall be in court next five years.”
By making this legal argument, legal experts have cautioned this will open the floodgates of lawsuits filed by importers to claim reimbursements, which will clog the courts and create a sense of uncertainty in the global supply chains.
Trump has gone ahead bragging loudly about the fact that the Dow had just topped 50,000, and the S&P had just topped 7,000, and it was all him who had stopped all that foreign junk with duties, and that he had been told this was how it happened: “I want to kiss you, Sir, I want to kiss you,” he said recollecting praises from his counterparts, who he said had stopped all that foreign junk with duties.
But his opponents have claimed that the tariffs have been unsuccessful and have harmed the very workers the Trump ethos claims to defend. The ruling was seized by Democrats who have long criticized the policies as being reckless.
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It was a hit on the affordability crisis that Trump is currently facing, according to House Minority Leader Hakeem Jeffries, who attributed the increasing costs to unpredictable responsibility. This is what Senator Brian Schatz said last year: “Everyone will pay more on everything, and this is the idea that is reiterated in new attacks.”
There is a wide consensus among economists: A study by the Federal Reserve Bank of New York identified consumers to be bearing 90 percent of the tariff burden, and prices were increasing without proportional increases in jobs.
90% Consumers Pay Tariff Burden: Fed Report
The former Trump advisor, Kevin Hassett, described the paper as a disgrace when defending the policies, yet critics such as Brookings’ David Wessel, argued it was a blowback of the destruction of old trade structures without putting in place viable alternatives that make people more inclined to back Trump.
The polls are widely unpopular, with 60 of the American people dissenting to increases in a recent poll by Fox News, 92 per cent of the Democrats, 82 per cent of the independents, even 28 per cent of the Republicans.
Middle-class saviors like tariffs were less popular in swing states such as Ohio, where support of helping unions or small businesses plummeted sharply in local opinion polls, with the idea of benefiting the rich increasing.
The Nixon import surcharges, the Obama tire taxes on China have been the cause of lawsuits and diplomatic disputes. The strategy by Trump increases the magnitudes though, with blanket taxes on allies such as Canada and EU, which made them retaliate with slaps to the U.S. exports such as whiskey and Harley-Davidsons.
UK’s Chatham House analysts view the ruling as a wholesale rejection which may drag the Congress into the fray. Plans to reconcile the tariffs using reconciliation were floated by the GOP Senator Bernie Moreno but this is a stretch to which not even the bipartisanism can agree.
FAQs Recommended For You on Trump’s Tariff volleyball:
1. What exactly was the Supreme Court’s decision about in the first place?
The Court, in a 6-3 decision, ruled against Trump’s utilization of emergency powers, IEEPA, for implementing wide-ranging tariffs. The court stated it overstepped its authority because it did not have Congress’s explicit approval. Justices Thomas, Alito, and Kavanaugh dissented. Trump has called the decision “deeply disappointing.” but stated that it is not going to end his tariff plans.
2. What is this new 10% global tariff we are hearing about?
Trump inked an order, it imposes a 10% duty on imports originating from most countries under Section 122. Keep in mind it is on top of any existing tariffs. This is designed to be temporary; it lasts up to 150 days, but it could be extended. Its purpose is to address trade imbalances. And just so we are clear: existing tariffs related to national security and unfair trade remain fully in effect.
3. Is all of these going to raise prices for, you know, everyday goods?
Yes, it is likely. Tariffs generally pass costs along to consumers. Studies suggest that Americans have borne approximately 90% of the burden for previous duties, inflating prices without corresponding big gains in jobs. Critics are saying that these actions might make things less affordable, mostly for imports such as electronics, clothing. And also food, especially if they are coming in from countries such as India and of course China.
4. So, what happens to the $175 billion in tariff money that has been collected so far?
It is not really clear, and honestly is likely to land everyone in more lawsuits. Trump has mentioned that the ruling had not addressed refunds, so he believes it “has to get litigated for at least the next two years,” and probably more beyond that even. It is possible that importers are going to seek reimbursements, but the process could take a while.
